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Purchased my 1st property 2008 in the NE <65k ( valued 75k ) when prices headed south I didn't fluster however when I did the Rightmove / Zoopla online valuations I found at no time has a price within the area I purchased been near my purchase price never mind the valuation.Anyone have a similar situation?
You have bought unfortuently at near peak close to credit crunch? Early jan/feb ?
and I have recently found a softening in the market.
If you follow Dyslexic Landllord whom operates in NE and has more experience of local market.
Im from NW , recently there was some posts here.
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Did you do the same due diligence at the time of purchase? Just trying to understand how this situation arose ...If you purchased new build, then the developer might have been charging a premium?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Sorry with the reply.
At the time it was thru a sourcing company whom had good reviews etc. I called a few estate agents regards the area whom classed as an average area no problems with rental and should be ok.
Oh yes I am in the same situation
Property I purchased from 2005 to 2007 is worth less today than it was then
Its not nice but its true
My figs are as follows
two bed flat 2007 85K
two bed flat 2018 75K
two bed flat after the crash 55k
so the good news is property prices have risen but not recovered
My yields are good and my interest rates are a third of what they were when I purchased the flats so I am not crying
I think they will recover to asking price around 10 years time
so in a nutshell no capital growth in 20 years
There is a lesson hear for the rest of the UK
What has happened in the North could well happen in the SE
in 10 years
It could be called the lost decade in regard to capital growth
low wage growth
harder lending rules
ect will hold Capital Growth back in general in the coming years
My own lesson on my investments was the dropping of interest rates if I had not had low rates my Flats would have been an awful investment
I am thankful for low rates
in my own situation its Ironic but low growth allows me to sell my property to my company and avoid CGT
so all in all its worked out ok
I have options which I would not have had if the property had doubled in price quite ironic.
Learn Change and Adapt ?????
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I too have the same problems as you regarding flats in the NE. Can I ask what you are doing when your mortgages are coming to an end or you are remortgaging them into your limited company. In my case its worse as my flats require a new lease extension as well
I will sell quite a few into my company and they will require a company Mortgage at the time around 8 years
My goal in 8 years will be to have a low leveraged personal owned property I will keep in my name a lot of property I have made highest gains
But I have made arrangements as a back stop incase I need to inject more cash as I obtain new mortgages in my own name
I don't think property prices will rise much over the next ten years
its going to be low growth
Its going to be a matter of rearranging property mortgages as they come along
its a bit off yet but I am prepared
all my company mortgages are on Capital and repayment so I have no issues with them but low leverage one way or another has to be my own road.
Related discussion:"A bad property deal is like a bad haircut ... it will grow out" ... or will it?
In my business I look at as a whole and you have to take the rough with the smooth
Made some great purchase after the crash all very good investments
But I believe there is a lesson for all landlords in my message buy on yield only
What has happened in the North my well happen in the SE but for very different reasons from the ones we had in the north in the past 10 years.
I expect many are in the same position and its only going to get worst. Property prices are way too high as we all know. Therefore a major adjustment is needed and during this time many will be foreclosed on as they hit negative equity, lose jobs and can no longer afford the mortgages/ rents. The first hit is always the cheapest. S